Format: True/False Learning Objective: LO 1 Level of Difficulty: Easy 1. The financial manager is responsible for making decisions that are in the best interest of the firm’s owners. A) True B) False Ans: A Format: True/False Learning Objective: LO 1 Level of Difficulty: Easy 2. The demand for a potential business product‚ as well as the identification of what product or services is to be produced‚ are both contained in a business plan. A) True B) False Ans: A
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Legal Issue A paper submitted in the course of Business Law BUS/415 University of Phoenix March 16‚ 2008 Introduction Agency Law in a Business Environment A principal is the party who employs another person to act on his or her behalf; an agent is a party who agrees to act on behalf of another. In order for the agent to successfully fulfill their tasks for their principal’s they have duties that they are expected to fulfill. The duty to obey instructions‚ to act with skill‚ loyalty‚
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Starting & Naming a Business Betty Wilson’s venture of opening a Christian Coffee House in Belmont‚ NC‚ presents her with abundant opportunities in selecting a business form. She is considering the following types of entities: 1) franchise‚ 2) sole proprietorship‚ 3) partnership of some sort‚ 4) corporation of some sort‚ 5) LLC‚ or 6) even as a joint venture. We will briefly explore each business option and give Betty concise recommendations as to what business form to pursue as well as what business
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Answer: False; Difficulty: 2; Keywords: Goal of the Firm‚ Shareholder Wealth Maximization 5. Business owners who want to operate as sole proprietors must request sole proprietor status and get approval from taxing authorities to pass business income to the owner’s individual tax return. Answer: False; Difficulty: 1; Keywords: Sole Proprietorship‚ Legal Forms of Business 6. A general partnership‚ unlike a limited partnership‚ is an entity that legally functions separate and apart from
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Five basic entity types exist in which to structure a business. These types consist of sole proprietorships‚ partnerships‚ limited liability companies (LLC)‚ C corporations‚ and S corporations. When determining the type of structure to use‚ comparison of different factors such as liability to the owners‚ taxation‚ and management controls must be conducted. Sole Proprietorships The sole proprietorship has one owner that is completely liable for the actions of the company but has total control
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Cheeseman‚ 210‚ p. 529) Moreover‚ choosing the right form to run a business will also determine how the business is organized‚ how the cash flow is‚ and how the business is taxed. “The most common forms of business organization are: sole proprietorship‚ general partnership‚ limited partnership‚ limited liability partnerships‚ limited liability company‚ and corporation” (Henry Cheeseman‚ 210‚ p. 529). According to the situation given‚ the best form is limited partnership. Limited partnership
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of businesses have both advantages and disadvantages. For example‚ an owner of a sole proprietorship isn’t required to register with the government‚ file a separate tax return‚ and hire a lawyer. However‚ the owner is personally liable (Samuelson‚ 674). On the other hand‚ managers and investors of corporation are protected from personal liability for debts (Samuelson‚ 675). In addition‚ an owner of sole proprietorship need to pay income tax from his income but LLC avoids double taxation (Samuelson
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one another’s feelings. Other firms have a family-friendly culture or a culture that encourages creativity. The term "organizational structure" refers to the actual framework of a company. In the United States‚ you register your business as a sole proprietorship‚ partnership‚ corporation or as a another type of entity. Your choice of structure has a direct impact on the firm’s tax liability and the way that day-to-day operations are handled. Control You decide on your company’s structure when you
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enterprises are carried on‚ there are to be found three basic forms in which the ownership of these enterprises is held. . The individual owning outright his own business and usually managing it himself without much cooperation or assistance.( sole proprietorship) . A group of owners‚ working together under some form of partnership agreement. . The impersonal owner - the corporation - standing between the business and the individuals who have various kinds and degrees of claims upon the business
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from five different types of legal entities to conduct business. These include Sole Proprietorship‚ Partnership Firm‚ Limited Liability Partnership‚ Private Limited Company and Public Limited Company. The choice of the business entity is dependent on various factors such as taxation‚ owner liability‚ compliance burden‚ investment and funding and exit strategy. Lets look at each of these entities Sole Proprietorship This is the most easy business entity to establish in India. It doesn’t need
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